The Hillsboro City Council met on Tuesday, Aug 20.
City Administrator, Larry Paine, explained that they had been looking at refinancing the two USDA bonds the city has to finance water and sewer plant improvements in order to help normalize payments on the bond and interest fund.
Paine said that changes in interest rates from the initial issue dates for both projects will allow for a savings of about $627,000. Activity in the bond market suggests that if the city refinances soon, they may be able to realize greater savings.
“The bond market follows the US Treasury notes and in the past 10 days, those interest rates have fallen from 2.05 percent to 1.65 percent,” said Paine.
However, Paine did warn the council that in the couple of weeks that it will take to complete the refinancing, the markets may bounce back to the 2.00 percent level and wipe out any additional savings so this is not a guarantee.
The council voted and authorized the resolution to refinance the USDA bonds.
In additional business, the city council:
◼ approved the appointment of Penny Nelson to the Hillsboro Housing Authority Board. She takes the place of Larry Cole who finished his term in September.
◼ heard the electric digger truck that was ordered this past spring will be ready the first part of Sept which is a month ahead of schedule.
◼ were updated on all of the road construction going on around town. N.Wilson is moving along quickly. The work on curb and gutter was scheduled to start last week. Residents on S. Wilson were informed that demo would start on Aug 22 or 23. West Grand has all of the full depth repairs poured and paving should happen on Aug 29 and 30. East Grand is close to having all of the pavement poured. Culverts will need to be poured on Washington, Lincoln and Jefferson near the area after that.
◼ members expressed appreciation for the brick already laid and how nice the road is to drive on.